SBI STUDENT LOAN

PURPOSE

To extend financial assistance to deserving/meritorious students for pursuing higher

education in India and abroad

ELIGIBLE COURSES - STUDIES IN INDIA

Graduation courses: B.A., B.Com., B.Sc. etc.

Post graduation courses: Masters and Ph.D.
Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental,
Management, Management, Computer, etc.
Computer Certificate courses of reputed institutes accredited to Department of
Electronics or Institutes affiliated to a university
Courses like ICWA, CA, CFA, etc.
Courses conducted by IIM, IIT, IISc, XLRI, NEFT, etc.
Other courses leading to diploma, degree etc. conducted by colleges, universities
approved by UGC/Government/AICTE/AIBMS/ICMR etc.
Courses offered by National Institutes and other reputed private institutions.
Regular Degree/Diploma courses like Aeronautical, Shipping, Pilot training etc.,
approved by Director General of Civil Aviation/Shipping. (if the course is pursued
abroad, the Institute should be recognized by the competent local
aviation/shipping authority)
Courses approved by LHO from their area of operation depending on future
prospects/recognition of institute
Vocational Training and skill development courses are not covered under this
scheme. A separate scheme SBI Loan Scheme for Vocational Education &
Training has been launched by Bank. (refer Script No: 1042)

ELIGIBLE COURSES - STUDIES ABROAD

Graduation: For job oriented professional/ Technical courses offered by reputed

universities.

Post graduation: MCA,MBA,MS Etc. Post Graduation Diploma courses for

professional/ Technical courses offered by reputed universities

Courses conducted by CIMA (Chartered Institute of Management Accountants) -

London, CPA (Certified Public Accountant) in USA etc.
STUDENT ELIGIBILITY

Should be an Indian National.

Secured admission to a higher education course in recognized institutions in

India through Entrance Test/ Merit Based Selection process after completion of

HSC (10 plus 2 or equivalent)

Secured admission to foreign university/institutions**

In cases, where there is no Entrance Test/ Merit based selection procedure,

securing admission to a higher education course in a recognized institute may be

considered.

Students who have appeared in any Entrance Test, secured passing marks but
could not get admission due to lower ranking and who opt to pursue the course
under Management Quota in the same Institution or another Institution for
reasons of convenience (proximity) or choice of course, will be eligible for
sanction of Education Loans. For courses under Management Quota seats
considered under the scheme, fees as approved by the State Government/
Government approved regulatory body for payment seats will be taken.

* Students who are required to deposit part of the admission fee on the day they
go for counseling and

**students who are to deposit part of the fee before admission is formally granted
may also apply (subject to conditions)

ELIGIBLE EXPENSES

Fee payable to college/school/hostel.

Examination/Library/Laboratory fee.
Travel expenses/passage money for studies abroad.
Purchase of books/equipments/instruments/uniforms/ computer at
reasonable cost, if required for course completion and any other expense
required to complete the course like study tours, project work, thesis, etc.
can be considered for loan subject to the condition that these should be
capped at 20% of the total tuition fees payable for completion of the course.
Caution deposit /building fund/refundable deposit supported by Institution
bills/receipts the amount considered for loan should not exceed 10% of the
tuition fees for the entire course.
Cost of a two-wheeler upto Rs. 50,000 can be included in the expenses
 considered eligible for finance where the loan amount is secured by a
suitable third party guarantee and/or tangible collateral security. Two-
wheeler can be necessary in some cases where hostel and college are far
apart.
Premium of RiNn Rakhsha (IRDA License No: UIN: 111N078V01): Finance for
RiNn Rakhsha will improve insurance-coverage of the loan.

*Subject to certain conditions

QUANTUM OF FINANCE

For studies in India: Maximum Rs. 10 lacs

For studies Abroad: Maximum Rs. 30 lacs

MARGIN

Up to Rs 4 lacs: NIL

Above Rs 4 lacs: Studies in India: 5% , Studies abroad: 15%

Scholarship/assistantship to be included in margin.

Margin to be brought in on year-on-year basis as and when disbursements are

made on a pro-rata basis.

Students applying for above Rs 4 lacs for study abroad to deposit Rs 5000/- by
Bankers Cheque, which will be adjusted later towards margin/interest or commission a/c
if loan not availed.

RATE OF INTEREST

- For loans upto Rs.4 lacs 350 bps above BASE RATE

- Above Rs.4 lacs and upto Rs.7.50 lacs 375 bps above BASE RATE

- Above Rs.7.50 lacs 175 bps above BASE RATE

- 50 bps concession in interest for girl student

-1% concession in rate of interest if full interest is paid during moratorium period

Simple interest is charged during study period and moratorium period

SECURITY

Upto Rs. 4 lacs: No security. Co-obligation of parents

Above Rs. 4 lacs and upto Rs.7.50 lacs:

Co-obligation of parents together with collateral security in the form of suitable third
party guarantee.
The sanctioning authority will replace Third Party Guarantee with Parent/ Guardian as
co-borrower provided the Gross Annual income of Parent/ Guardian (co-borrower) as
verified by the latest Income Tax Return is 3 times the loan amount.

Above Rs.7.50 lacs:

Co-obligation of parents together with tangible collateral security of suitable value,
along with the assignment of future income of the student for payment of instalments

NOTE :

The co-obligator should be parent(s)/guardian of the student borrower. In case of

married person, co-obligator can be either spouse or the parent(s)/parents-in-law.

PROCESSING FEE:: NIL

REPAYMENT AND REPAYMENT HOLIDAY (MORATORIUM)

Accrued interest during the moratorium to be added to the principal and

repayment in EMI fixed.
Repayment will commence one year after completion of course or 6 months after
securing a job, whichever is earlier.

Maximum Loan Limit Repayment Period

Upto Rs. 4 Lacs Upto 10 years

Above Rs. 4 Lacs and upto Rs. 7.5 Lacs Upto 10 years

Above Rs. 7.5 Lacs Upto 12 years